Investing.com — The dollar held onto gains against other major currencies on Monday, as markets were still recovering from the weekend’s elections in Germany and New Zealand and asconcerns over tensions between the U.S. and North Korea seemed to subside.

EUR/USD slid 0.51% to 1.1896 as Germany’s federal election on Sunday showed growing support for a far-right party.

Chancellor Angela Merkel won a fourth term in office on Sunday but will have to build a coalition to form a government as Conservatives lost support in the face of a surge by the anti-immigration Alternative for Germany (AfD).

Earlier Monday, data showed that German business confidence edged lower in September. However, the reading remained close to the highest level on record, suggesting momentum in the euro zone’s biggest economy remains strong.

GBP/USD added 0.14% to trade at 1.3530, recovering from moderate losses posted on Friday after UK Prime Minister Theresa May gave few new indications on how Brexit will proceed.

May proposed a transition period of around two years after the UK leaves the European Union, during which time access to the single market will continue on current terms.

Following May’s speech, ratings agency Moody’s downgraded Britain’s credit rating to Aa2, saying government plans to reduce debt had been knocked off course and that Brexit would weigh on the economy.

Elsewhere, USD/JPY held steady at 112.06 and USD/CHF gained 0.15% to 0.9723 as markets recovered from North Korea’s threats last week to conduct a nuclear test in the Pacific Ocean.

The Australian dollar was little changed, with AUD/USD at 0.7959, while NZD/USD dropped 0.76% to 0.7285 after no single party won a majority New Zealand’s elections over the weekend.

The ruling National Party won the largest number votes, but neither of the major parties won enough seats to gain a majority in parliament, forcing a round of coalition talks that could last days or weeks.

Meanwhile, USD/CAD eased 0.09% to trade at 1.2327.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.26% at 92.19 by 05:20 a.m. ET (09:20 GMT).